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How DeepSeek leveraged Qwen and Llama to build its model in $5M

with Amanda Brock

Transcript

Chapters

Trailer
[00:00:00]
AI DevCon
[00:01:25]
Introduction
[00:02:19]
What does openness mean for AI models
[00:05:30]
The value of open source models
[00:09:22]
Meta's Llama: open innovation, not open source
[00:11:19]
The risks of open washing
[00:13:52]
DeepSeek and model distillation
[00:17:25]
Closed vs open models: when to use each
[00:19:51]
Can agents mask cheaper model limitations
[00:24:12]
Kimi: the model the West is missing
[00:26:24]
Why developers still default to closed APIs
[00:29:00]
Open models with open agents
[00:30:42]
The future of open source AI
[00:32:28]
What's next for OpenUK
[00:36:49]
Wrap-up
[00:38:31]

In this episode

Meta’s Llama might not actually be open source AI, and the developers building on it have no idea.


In this episode of AI Native Dev, Simon Maple sits down with Amanda Brock, CEO of OpenUK, to break down what open source actually means in the age of AI and why most of the industry is getting it wrong.


They get into:

  • what open washing is and why it is happening across major models right now
  • how DeepSeek built a frontier model for $5 million instead of $100 million
  • why Chinese developers are already on Kimi and the west is sleeping on it
  • what the west needs to learn from China's open source strategy before it is too late

Eight companies already control the world's digital infrastructure. We cannot let that happen again with AI.

What Makes an AI Model Truly Open Source?

The term "open source" has accumulated trust over thirty years. Developers know what it means when applied to software: anyone can use the code for any purpose. But as that term migrates to AI models, the definition has become contested, sometimes intentionally muddied by companies seeking the reputational benefits of openness without delivering its substance.

In a recent episode of the AI Native Dev podcast, Simon Maple spoke with Amanda Brock, CEO of OpenUK and a veteran of open source legal frameworks dating back to her time at Canonical in 2008. The conversation cut through the marketing language surrounding "open" AI to examine what openness actually means for developers building with these technologies.

Disaggregating the Components

Rather than trying to define whether an entire AI system is open source, Brock advocates examining each component separately. An AI system might include algorithms, weights, training data, documentation, and increasingly, agents. Each component can be evaluated independently against established open source criteria.

"My preference is that we disaggregate the technology," Brock explained. "We don't try to define something that's so emerging, and we look at AI as it evolves."

The practical test remains the same as traditional open source: is the component licensed under an OSI-approved license like Apache, MIT, or GPL? If the algorithm is openly licensed but the training data is not provided, that represents a partial opening. Developers can make informed decisions about what they are actually receiving rather than accepting blanket claims of openness.

This disaggregation matters because AI systems are evolving rapidly. When organizations first attempted definitions two years ago, they focused almost exclusively on language models. That framing already feels dated as robotics, embodiment, and agentic systems emerge. A component-based approach adapts more gracefully to technological shifts.

The Llama Open Washing Case

Meta's Llama release in July 2023 became a pivotal moment for the industry, but also a textbook case of what Brock calls "open washing." OpenUK supported the launch as "open innovation" but deliberately avoided calling it open source because the license contained two critical restrictions.

First, an acceptable use policy limits what developers can do with the model. Second, a commercialization provision requires organizations that reach a certain user threshold to negotiate a commercial license with Meta. Nobody knows the terms of that commercial license because, according to Brock, no one has triggered it in a trackable way yet.

"When you go back to that basic principle of open source, that anyone can use it for any purpose, that just doesn't happen," Brock noted. "You've always got the risk of this restriction."

The distinction matters because open source trust enables cascading innovation. A developer who builds on truly open technology can share their work knowing that downstream users inherit the same freedoms. With restricted licenses, that chain breaks. You cannot build confidently when the foundation might require commercial negotiation at scale.

Brock suggests Meta's recent signals about moving away from openness stem from this structural problem. Without genuine open source, they failed to build the ecosystem and community that open source typically generates. The reputational benefits of calling something open do not compensate for the missing collaborative dynamics.

DeepSeek and the Documentation Difference

The conversation turned to DeepSeek R1, which demonstrated a different approach to openness. While DeepSeek did not provide its training data, the documentation was comprehensive enough that Hugging Face built R1 Open within days by training on equivalent data themselves.

This points toward documentation as a critical factor in evaluating openness. A model that cannot be replicated offers limited practical benefit regardless of how it is licensed. DeepSeek's approach enabled meaningful iteration even without full data access.

The distillation technique DeepSeek used, building on Qwen and Llama to create something equivalent without training from scratch, also reduced costs dramatically. Reports suggested roughly five million dollars instead of one hundred million. That cost reduction itself enables broader participation in model development.

Kimi: The Model Western Developers Are Missing

When asked about underappreciated open source models, Brock pointed to Kimi, created by Chinese company Moonshot. During a recent trip to China, she observed that virtually every developer she spoke with was using Kimi, describing adoption as remarkably fast.

"Kimi seemed to be the thing that absolutely every developer was using in China," Brock observed. "It really seemed to be running ahead for the developers."

The gap between Kimi's popularity in China and its relative obscurity in Western development communities suggests information asymmetries in the global open source AI landscape. Rumors have circulated that Cursor's Composer 2 model may actually be Kimi repackaged, though the specifics remain unclear. Either way, the model represents capability that developers outside China may be underutilising.

Why Adoption Lags Despite Quality Improvements

Despite open source model quality approaching parity with closed alternatives, enterprise adoption remains lower than expected. Brock sees parallels to open source software adoption twenty years ago: risk management concerns, lack of understanding, and procurement processes that default to rejection.

"It's very reminiscent of open source software 20 years ago," she said. "A lot of it is for similar reasons, which were about risk management, lack of understanding, maybe unnecessary fears."

The shift will likely happen at an industry level rather than through individual developer decisions. Just as open source software became default infrastructure through gradual normalization, open source AI models will probably follow the same trajectory. For organizations outside the US and China, the economics make this particularly compelling. Building frontier capabilities independently is prohibitively expensive, making collaborative development through open models an economic necessity.

Agents as a Compensating Layer

An interesting thread emerged around how agentic systems (https://claude.ai/blog/ai-agent-evaluation-framework) might interact with model quality. If an agent runs a model a hundred times and surfaces only the successful result, it effectively compensates for lower accuracy. This suggests cheaper, open source models combined with agentic retry logic could deliver comparable outcomes to expensive closed models for many use cases.

Brock also noted growing interest in training models not to respond when they lack knowledge, rather than generating plausible but incorrect answers. Combined with domain-specific fine-tuning (she cited telco companies pooling resources to train specialised models), these approaches could significantly improve the practical utility of open source models for production applications.

Building National Open Source AI Ecosystems

Looking forward, Brock emphasised the need for national-level infrastructure to support open source AI development. China adopted an open-source-first strategy eight years ago with specific government actions to support it. The UK's AI minister recently declared ambitions to become the home of open source AI, but achieving that requires learning from China's ecosystem development approach.

She advocates for national foundations that could hold standards like MCP, maintain shared model resources, and coordinate capacity building. Without such infrastructure, countries outside the US-China axis will struggle to participate meaningfully in AI development rather than simply consuming what others produce.

For developers evaluating open source AI options today, the practical guidance is clear: examine licenses carefully, distinguish marketing claims from actual openness, evaluate documentation quality, and consider the entire component stack rather than accepting blanket characterizations. The trust that makes open source valuable depends on precision about what that term actually means.

The full conversation covers additional ground on sovereignty concerns, OpenUK's upcoming events across the UK, and the trajectory of small language models. Worth a listen for anyone navigating the increasingly complex landscape of AI model selection.

Chapters

Trailer
[00:00:00]
AI DevCon
[00:01:25]
Introduction
[00:02:19]
What does openness mean for AI models
[00:05:30]
The value of open source models
[00:09:22]
Meta's Llama: open innovation, not open source
[00:11:19]
The risks of open washing
[00:13:52]
DeepSeek and model distillation
[00:17:25]
Closed vs open models: when to use each
[00:19:51]
Can agents mask cheaper model limitations
[00:24:12]
Kimi: the model the West is missing
[00:26:24]
Why developers still default to closed APIs
[00:29:00]
Open models with open agents
[00:30:42]
The future of open source AI
[00:32:28]
What's next for OpenUK
[00:36:49]
Wrap-up
[00:38:31]